Glacier Bancorp Acquisition Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

On why the bank GBCI acquired decided to sell:

“I think that it’s just like so many other banks, I mean, especially the smaller community banks. I think that the regulatory burden, Jeff, is — and these are some very, very smart people. I think they recognize that that was not going to get any better. I mean, they’ve seen as even the $350 million bank, the challenges that this regulatory environment creates, the expenses, the resources that it absorbs, and I think that was definitely one of the keys. I think the other one was that if we can partner with a company that gives us the best of both worlds, I mean, gives us that ability to still be a community bank, still be looked upon as a community bank but bring some resource to the table that we would not have had otherwise, especially like when it comes to lending limits, technology, the ability to reduce their regulatory [ph] — those were the probably 3 key issues. Probably, as a secondary issue, don’t think it affects this bank as much as most other community banks, and that is the interest rate environment. I mean, with where they’re located and the types of business they’ve done, they’ve been able to maintain a very healthy margin in that. But to some degree, I think all banks, Jeff, are looking at the fact that if we’re down here 2 or 3 more years in this rate environment, it’s just going to continue to whittle away at that net interest income. I don’t think that was the major issue for them, though, because — again, because of where they are located, because of a lower level of local competition, they just don’t have as many local competitors as other markets. Their ability to keep their margins intact has been very, very good, so I don’t think that was the main driver. I think it was more just as they look at the tea leaves, Jeff, they saw that the regulatory environment was not going to get better. The fact that they had some real opportunities to grow and growing independently was going to be a much, much slower process, and bringing the types of technology and services to their customer base was going to be a slower, slower goal than if they partnered with us. So we’re just thrilled they did and we really, really like the transaction and like the bank and like the people. So I think it’s going to be good.”